MAGNOLIA PETROLEUM PLC: Excellent Production at 2nd Jake Well, N. Dakota
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
25 July 2013
Magnolia Petroleum Plc(`Magnolia' or `the Company')
Excellent Initial Production at Second of Six Jake Wells in North Dakota
Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas
exploration and production company, is pleased to report an initial production
rate of 2,244 boepd for the Statoil operated Jake 2-11 2TFH well in the Three
Forks Sanish Formation, North Dakota, in which Magnolia holds a 1.465% net
revenue interest. This adds 33 boepd to the Company's net production and
follows the initial production rates for the Jake 2-11 # 1H, announced on 22
July 2013, which added a further 57.5 boepd net to Magnolia. This update is in
line with the Company's strategy to rapidly build production and reserves on
its leases in proven US onshore formations.
Commencement of Production at Jake 2-11 2TFH
Well Name Targeted Operator Gross IPR Magnolia's Net IPR
NRI%
Formation
Jake 2-11 Three Forks Statoil 2,244 boepd 1.465 33 boepd
2TFH Sanish, North
Dakota (85% oil)
Rita Whittington, COO of Magnolia, said, "As a result of this second Statoil
operated Jake well, the last four wells in which we have participated in North
Dakota's prolific Bakken and Three Forks Sanish formations have added almost
200 boepd net to Magnolia. Even after taking decline rates into account, this
substantial increase in net production will result in a major uplift in
revenues which in turn will fund new wells and leases.
"Revenues generated from 121 producing wells are funding an ever-increasing
proportion of our drilling activity across our portfolio of 13,500 net mineral
acres in proven US onshore formations. With an additional four Jake wells to
come, along with other wells in which we have larger working interests such as
the Blaser (12.5% working interest), we are highly confident this trend is set
to continue."
** ENDS **
Glossary
`boe' means barrels of oil equivalent: a unit of energy based on the
approximate energy released by burning one barrel (42 US gallons or 158.9873
litres) of crude oil.
There are 42 gallons (approximately 159 litres) in one barrel of oil, which
will contain approximately 5.8 million British Thermal Units (MBtus) or 1,700
kilowatt hours (kWh). The value is necessarily approximate as various grades of
oil have slightly different heating values. BOE is used by oil and gas
companies in their financial statements as a way of combining oil and natural
gas reserves and production into a single measure.
`boepd' means barrels of oil equivalent per day
`IPR' means initial production rates
`NRI' means net revenue interest
`WI' means working interest
For further information on Magnolia Petroleum Plc visit
www.magnoliapetroleum.com or contact the following:
Steven Snead Magnolia Petroleum Plc +01 918 449 8750
Rita Whittington Magnolia Petroleum Plc +01 918 449 8750
Jo Turner / James Caithie Cairn Financial Advisers LLP +44 20 7148 7900
John Howes / Alice Lane / Northland Capital Partners +44 20 7796 8800
Luke Cairns Limited
Lottie Brocklehurst St Brides Media and Finance Ltd +44 20 7236 1177
Frank Buhagiar St Brides Media and Finance Ltd +44 20 7236 1177
Notes
Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas exploration
and production company. Its portfolio includes interests in 121 producing and
non-producing assets, primarily located in the highly productive Bakken/Three
Forks Sanish hydrocarbon formations in North Dakota as well as the oil rich
Mississippi Lime and the substantial and proven Woodford and Hunton formations
in Oklahoma.
Summary of Wells
Category Number of wells
Producing 121
Being Drilled / Completed 13
Elected to participate / waiting to 34
spud
TOTAL 168
END
-0- Jul/25/2013 06:00 GMT